Research On The Impact Of Minimum Wage On Education Expenditure Of City Low-income Families

As an important social security measure to protect the low-income groups,the minimum wage system helps to reduce the income gap between the rich and the poor and guarantee the welfare of the low-income groups.Family education expenditure,as an important way to maintain the stability and growth of family intergenerational income mobility and promote the accumulation of family human capital,is of great significance to the accumulation of family human capital.The promotion of the minimum wage standard has a dual effect on the promotion of family education expenditure.On the one hand,the rise of the low wage level will increase family income,increase family Preventive Savings and promote the growth of family education expenditure;on the other hand,the minimum wage also increases the cost of enterprises and aggravates social unemployment,so the minimum wage may lead to increased risk of family unemployment,No.It is conducive to the increase of family education expenditure.Based on the existing literature,this paper combs the minimum wage theory and family education expenditure theory,and analyses the theoretical mechanism of the minimum wage affecting family education expenditure.Subsequently,based on the mixed cross-sectional data of China Labor Force Dynamic Survey(CLDS)from 2012 to 2016,this paper uses OLS method to examine the impact of minimum wage on education expenditure of urban low-income families.It is found that both the minimum monthly wage(full-time)and the minimum hourly wage(part-time)will increase the education expenditure of urban low-income families.This conclusion is based on the replacement index.The method of Substitution Measurement and the caliber of substitution samples are still reliable under the robustness test.The results of heterogeneity analysis show that the minimum wage has a positive impact on the sample families in the eastern region and in the 2014 and 2016 cycles.At the same time,the positive impact of the minimum wage on the education expenditure of urban low-income families is more significant with the improvement of family income,respondents’ educational background and workers’ skills.The results of mechanism test show that the increase of minimum wage standard helps low-income families in cities and towns pay more attention to education,and then increase family education expenditure,but the result of the unemployment effect of minimum wage is not significant.On the basis of the empirical results,this paper puts forward relevant policy recommendations from three aspects: giving full play to the role of the minimum wage system in family education expenditure,properly raising the minimum wage standard,and scientifically adjusting the minimum wage standard to ensure the accumulation of human capital in low-income families.At present,there are few studies on the impact of the minimum wage on micro-human capital in China.This paper explores the impact of the rise of the minimum wage on family education expenditure and analyses and tests its impact mechanism,which is an important supplement to the existing research.This study aims to maximize the positive effect of the minimum wage system at this stage,help to achieve the goal of human capital investment and accumulation of urban low-income families,and enhance the economic benefits and social welfare effects of urban low-income families.